The simplicity of eliminating poverty and war will stun you

From Plunder by Raids to Plunder by Trade addresses the theft of wealth from the periphery of empire.

These pages “Plunder by Property Rights Law as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free” address unearned wealth within internal economies.

Utilizing that knowledge, the current ongoing crash can be stopped in its tracks, the world economy restructured to full and equal rights for all, world poverty eliminated within 10 years, and a quality life provided each citizen on earth within 50 years (two generations).

During that development period, employed labor time outside the home must be steadily reduced in step with the efficiency gains of both technology and a restructured economy. When a nation or economically viable region is fully developed, each need be employed outside the home no more than two to three days per week to sustain a quality life.

Those economic efficiency gains measures the massive waste of the current monopoly structure which we are told does not exist.

Their unequal property rights laws collapsing would leave America and Europe with the same choices of governing structures as the choices facing the rest of the world, a communal or socialist structure or the  cooperative economic and financial engine powered by the full and equal rights of honest capitalism.

With their citizenry trained to distrust communal and socialist principles, restructuring property rights laws to full and equal rights capitalism would be the more likely choice.

But, so few know about that philosophy, only a powerful president with exceptional vision and integrity, such as Franklin Roosevelt in the Great Depression of the 1930s enacting revolutionary legislation within 100 days, could guide a nation to its own salvation.

In this financial crisis, like all others in history, families will be cold and hungry. Then is when an alert president can guide the nation through the storm.

This article is a theoretical example of such a president leading America through just such a crisis. We have our fingers crossed that President Barak Obama will be that person. Taking stock, this president and his or her advisors will calculate that most the collapsed values which once measured the wealth of the citizenry will have been pledged to loan institutions.

He or she would know that for centuries monopolists (those with the money to loan, some of it earned but the greater share unearned) firmly enforced the rule that the final mortgage holder will, in the case of bankruptcies, own all property backing defaulted loans.

He or she would understand that the current privately-owned, bankrupt, loan institutions will be, by the same custom and law, owned by the Federal Reserve, the lender of last resort which has been loaning (actually giving) trillions of dollars to the nation’s largest banks and other financial institutions to keep them solvent.

Three times—after WW I, in the depth of the Great Depression of the 1930s, and after WW II—the monopoly system avoided its overthrow by ballot box revolutions only by the major share of those countries turning to fascism and then WWII.

This time, with half the world industrialized, but divided into various centers of capital, and the yet-unindustrialized half fully aware, there should be no way to save the centuries-old, enormously wasteful, property rights system designed to protect wealth and power at the expense of the powerless.

It is understood that America’s socially-owned Federal Reserve, with its money creation powers, taking over management of those bankrupt banks is the only option.

The current powerbrokers understand the process very well.

Thee power structure was using these principles to prevent financial and economic collapses and protect the ethereal world of high finance well before Japan put them into practice and they are using them heavily today (2008-09).

The one-day stock market collapse of 22.6% in 1987 was nearly double the first day of the October 29th crash in 1929 which heralded the Great Depression. Wall Street was paralyzed. Banks were told to keep loaning money to those bankrupt brokerages and the government guaranteed everything.

The same quasi money creation features were implemented to resolve the earlier 1982 Savings and Loan scandal, the 1990 Citibank bailout, the 1994 Mexico crisis that threatened U.S. banks, the Asian currency crisis of 1997-98, Long-Term Capital Management’s bankruptcy crisis in 1998, the dotcom crash of 2000-2001 and during the current crisis (2008-09) the Federal Reserve-treasury is pouring money at the nation’s largest banks that otherwise would be bankrupt.

To keep those banks and the government afloat, base money was being increased (created) by the Federal Reserve-treasury in late 2008 at an unknown, but astounding, rate (the 12 preceding months the increase was roughly 17% a year). Under current law, when banks go broke, they are owned by the lender of last resort which is the socially-owned Federal Reserve.

The scope of this crisis and the need to totally restructure the economy requires calling in those loans and nationalizing those bankrupt banks. With higher interest to depositors and lower interest to borrowers, due to far lower operating costs and backed by the Fed’s money creation powers, depositors and borrowers will flock to those secure socially-owned banks.

Already in trouble, the rest of the banks will turn in their keys as fast as their customers transfer to those secure banks. The entire banking system will be, as it should be, socially-owned.

The goals must be the greatest good for the greatest numbers—food, fiber and shelter for everybody and protecting the savings and equities of the maximum number of people. This requires financing both consumers and the real economy as opposed to the current financing of the ethereal world of high finance, those major banks just addressed.

A decree is issued for every head of household—husbands, wives, or singles—without a job and without other income or resources to apply to their bank or credit union for a monthly subsistence based on single households receiving 75% that of married couples and an allowance for each dependent.

The loan institutions will put the applicant’s electronic transfer number on that application. That form will include testimony, under oath, that they have no income or resources.

Upon signing, and on the 1st of each month thereafter until receiving their first full paycheck, subsistence funds will be computer-deposited into those accounts.

Heads of family will walk out with funds in that secure bank to cover food, fiber, and shelter for that month and each month thereafter until employed. Those who would be against a non-bankruptable bank and subsistence funds for those with no equity and no income would be so out of sync with events they will be few and irrelevant.

Though only modest amounts of cash can be withdrawn, all trades can be quickly consummated through checks, credit cards, or debit cards which are the real money in a modern economy.

With this latest break from unequal property rights laws as applied to nature’s resources and technologies which she offers to all for free, all Americans are now fed, clothed, and housed and the worst aspect of the crisis, a cold and hungry citizenry, is under control.

Spending of those subsistence funds will increase demand and quickly stabilize the economy.

With money flows across national borders controlled through countries and regions issuing new currencies spendable only within their borders, any shortage of circulating money for subsistence payments’ and continued funding or repairing of economic infrastructure can, up to the level of a balanced money supply, be created.

These are dual currency systems handling world trade through an international currency. The value of each nation’s currency and debts will have to be negotiated. As the collapse was caused by these values and economies being out of balance, sacrifice will be required on all sides and national economies will have to be put in order.

Inflation threats due to too much circulating money are easily handled when a currency is spendable only within a nation’s borders. If required reserves of 3% are increased to 6% in step with money creation doubling reserve deposits (base money), the circulation of money will be reduced by half and the money available to borrow remains the same. A 30% increase in reserve deposits, due to an increase in created money, will require a mandated reserve increase from 3% to possibly 4% to maintain the same money supply.

However, both money and investment confidence will have been destroyed in the economic collapse, creating inertia, and increasing those required reserves (destroying surplus money) will be only after the economy has returned to normal and threatens to inflate. Economic balance can be further attained through resource rents (see below) and banking charges maintained at a level that covers the costs of infrastructure construction and maintenance, operations of government, universal health care, and, though doing so through payroll deductions may be necessary so as to keep an accounting of the economy, retirements.

The gains from the elimination of banking and land (resource) monopolies stand out in bold relief.

Those two keystones restructured under the principles of full and equal rights supply the funds to operate all essential services of government—infrastructure, health care, retirement, etc, (the real economy) even as all taxes disappear.

The initial distribution of socially-created money and destruction of any surplus, if necessary, through increased mandated reserves, along with careful loaning choices, are tools to point money to the owners and operators of the real economy.

This bypassing the ethereal world of high finance, avoids deflations and inflations and the only crisis would be from natural disasters.

Poorer and intermediately developed regions of the world will want to keep their economic development going during this crisis. This requires currencies that cannot be spent outside economically viable borders and a world currency handling trades between allied economically viable regions or nations as they decouple from imperial economies.

Under that dual currency system, each viable economic region or country can create base money to build infrastructure or, early on, even industries. With the understanding that matching higher mandated reserves permits money creation at any appropriate level, it is possible to operate an economy at very high levels of created money spent on essential needs either in a crisis or for development.

Once developed, money creation will be only when natural disasters, such as hurricanes, tornadoes, floods, and earthquakes, destroy value. Again note the savings. There will be no need to insure against such major disasters. Only individual fires have to be insured against.

Forced to decouple from the American economy, other nations and the developing world will be restructuring their banking systems under their own or a regional currency. With banking systems protected against cross-border flows of money and with development planning carried on through regional alliances, each region can develop sensibly and steadily at the maximum pace allowed by the construction equipment and resources available.

We will assume negotiations led to establishing a democratic Bank for International Settlements, an honest World Bank, overseeing that dual currency system. That world currency would handle trades between nations and regions. As the money of a properly-structured world bank will be only numeric values stored within computers, there will be no paper currency and this will eliminate both counterfeiting and black market exchanges. The “flickering beginnings” of a world federation with a world central bank will have become a steady glow.

Having addressed control of the flow of money across borders so regions can create money and rapidly develop, we return to the collapsing American economy which has just been stabilized by creating money for subsistence payments to the unemployed, for restarting the economy, and for economic structural changes we have yet to address.

Once monopolization is eliminated, only 40% the former level of finance capital will run the American economy efficiently (see pp. 38-50, 119-20, and 143-51 of J.W. Smith’s Money: A Mirror Image). Ownership of that capital will be very broadly diffused, and it will be democratically and equally shared with all transactions visible, touchable, and understandable.

The ethereal world of high finance, which is nothing more than massive surpluses appropriated through unequal property rights laws being placed on a gambling table, will be history.

With the old powerbrokers keeping a low profile and an appreciative citizenry paying close attention, this president realizes lobbyists can no longer block universal health care being legislated as a human right.

Faced with the logic of better service at half the price, with over 5000 physicians petitioning President Barack Obama to put this into law, with almost 50 nations having already established it, with such a single payer health care law already to be introduced (November 2008), and with Britain a stark example of 100% coverage at 43% the cost, single-payer universal health care will quickly be legislated into law.

The once cold and hungry citizenry are now warm, well fed, and their health care costs are covered by the profits of the socially-owned banking system. With food, fiber, shelter health care, and retirement for each citizen secure, crime will drop rapidly and the prison population and legal system will eventually shrink to a tiny shadow of its current self.

The genie will be out of the bottle and it cannot be put back.

The advantages and efficiencies of a socially-owned banking system and universal health care and retirement as social and human rights would be so obvious that the citizenry will be looking forward to a continued restructuring to full and equal rights.

A dialog on abandoning the monopoly system structured within property rights law as applied to nature’s resources and technologies, denying others their rightful share, which she offers to all for free will be on-going worldwide.

Once the insurance industry is analyzed and that segment of the economy restructured along the lines of Social Security (which costs 1/2 of 1% of payroll deductions compared to 50% for other insurances), the wastefully-used insurance offices would be turned to truly productive use, even as all citizens are fully insured at half the cost. The subsistence-pay-protected displaced insurance workers will be assured of a job when this economic restructuring is finalized.

As the efficiency of these newly restructured, now-honest, sectors of the economy will be rebuilding the power of remaining monopolies, progressives must move fast. The citizenry worldwide and those locally will be watching closely the on-going drama and by now will understand the key concept of full and equal rights: “Human labor did not produce land (resources), nature offers it to all for free, and a rightful share for each can be had through social-collection of resource rents and those funds returned to the citizenry through funding health care, retirement, running governments, building and maintaining infrastructure, and other essential services.”

All taxes disappear, gains are quintuple

All other taxes disappear as those funds (bank profits, created money, and resource rents) are returned to the citizenry through being expended on running governments, building and maintaining economic infrastructure (water and sewer systems, roads, railroads, electricity, communications superhighways, and all other natural monopolies), universal health care, retirement (unless economic accounting requires deductions from earnings), and, in emergency, any social need.

When the citizenry learn of these quintuple gains, society collecting all resource rents and expending it on social needs will pass by law or referendum. The mother of all monopolies will have been eliminated, all would be receiving their share of the wealth produced by nature, and, for the first time in history, an honest capitalist society will have been established.

As all the above is taking place, accountants experienced in real estate will be assessing the value of all property before and after the financial collapse. The price mechanisms of capitalism had measured those values but those old monopoly-created values and the 60% (minimum) of the current blocs of capital buying and selling those values were not legitimate then and are not legitimate now.

But protection of honestly-earned savings mixed with those monopoly values requires reduction in debts at the same ratio as the rationalization (collapse) of property values.

Under the inclusive principles of of social collection of resource (land) rents land values will be zero but the use values will be more valuable than ever.

Clearing up all titles under the principle of the greatest good for the greatest number

With property reassessment ongoing, this president proceeds to clear up titles to all property and, with the greatest good for the greatest number in mind, restore the financial health of the nation. Once current values are assessed, the previous owners will have first rights.

The land under all homes, all farms, all mines, and all industries will be listed under the name of the current owners (previous owners if property has been foreclosed upon) but they now must pay monthly resource rents.

Considering those resource rents are offset by all taxes eliminated, the land under homes, businesses, and industry will be owned and utilized at no net increase in cost. Community lands will incur no purchase costs or rents. The property owner has all rights to that land except the right to collect a private tax, the land rent.

Those resource rents and banking profits financing infrastructure, universal health care, governments, etc, and all taxes eliminated, quintuply compensate a citizenry for abandoning the current monopolization structure that they had been taught did not exist. Recalculated wages, discussed below, will be adequate and low-paid retirements must be recalculated to that necessary for a quality life.

As capitalized values of nature’s wealth have disappeared, loans against nature’s wealth must be erased from the records and that against structures revalued to current values.

Registered owners, including former owners of foreclosed properties, will have first rights. Acceptance of that new title with its revalued debts obligates owners to pay monthly resource rent to society and, if a revalued debt is owed, make payments on value adjusted mortgages with debts against land erased and that against structures revalued.

If 50% of loan values were backed by the land before the crisis, that 50% loan value is erased. If homes and structures, separate from the land, were half paid for before the collapse, the remaining loan would be discounted to 50% those structure’s current value. Autos, boats, and other loans would be similarly restructured.

Real-estate with no debt would not be affected except that landowners monthly rent to society would, when all efficiencies were factored in, be quintuply compensated for as addressed above.

Those with more than one home, or other resources, will not be receiving subsistence payments unlessl those resources have been consumed. That rule would not apply to an owned business in which that person is directly employed and which is temporarily idle due to the crisis.

Such productive resources would be entitled to protection and support from the socially-owned banking system in the same manner as these suggestions for protection of titles to homes.

One’s home ownership rights under a socially-owned banking system while restructuring, should not go beyond funding for one home. Under the financial crisis, most second homes or investment properties carrying debt will have been repossessed by the loan institutions.

Assuming a rental home had been repossessed, those renting would be first in line to purchase those homes and financing would be available. This socially-owned banking system, being not-for-profit and not bankruptable, has replaced trillions of dollars in uncollectable debts with collectable debts at the same debt-equity level as before the collapse.

The process is simple and the rights of all can be protected while stabilization of a severe crisis is not viable under private banking and restructuring is equally impossible. Protecting borrowers would be in direct conflict with property rights and private banks’ maximization of profits.

Elimination of patent monopolies

With the citizenry understanding the monopoly system they previously were unaware existed, and with property rights of all secure, this is the time to tackle the doubling of consumer costs due to patent monopolies.

Explanations to the citizenry on how consumer prices are at least twice, and possibly four times, that necessary, will make those legal changes imperative. Whether by Congressional action or referendum, those patent laws will change to paying inventors well and placing patents in the public domain.

When that law is fully in place, 85% of the activity of casinos known as stock markets where those unearned profits were collected will disappear. The resources and talented labor previously battling within equity markets over who shall claim the enormous wealth produced by technology will be available for truly productive use.

Current patents will be in force for up to 20 years. Transferring technology to undeveloped regions in trade for access to resources while letting them run out within the developed world, will give corporations those 20 years to unwind from their monopoly positions.

When unwound, their production-distribution capacities will be intact but they will no longer be appropriating wealth through monopolization. As the gains and protections of society as a whole are obvious, other, rapidly federating, countries would adopt the same patent structure.

The wealthiest nations have greater dependence upon developing world resources. Rising centers of capital will be rapidly transferring technology in trade to the poorer regions of the world for equal access to those resources. All will recognize that unequal property rights (monopolization patterned after aristocratic law) had effectively collapsed and they will adjust their property rights accordingly. Social collection of resource rents and bank profits is the only way that can be efficiently done with each sharing equally.

Monopoly values of corporations are primarily capitalized values of wealth appropriated through exclusive title to nature’s resources and technologies, the monopolization process. These are all big boys fully believing in the system they had created and which had now crashed. As most those values had been appropriated from productive labor over the years and those property rights — now proven as a system of theft—have been abandoned, nothing is owed there.

The economic collapse plus the loss of monopoly values will drop the value of most corporations below their debt values (values collapsed 89% in the Great Depression). As the original private banks will have been holders of 1st mortgages, the now socially-owned banks will own those corporations and the looming elimination of patent monopolization, along with the economic crisis, will, as in all great crashes, will collapse stock values to that of wallpaper.

As private property and free enterprise should be maintained, distributing shares to labor and management within those corporations as loans at market-value, and with those loans to be repaid along the principles of the subchapters “Accumulation of Capital under full and equal rights ” and “Investment and Job Opportunities” would resolve that equitably (see Money: A Mirror Image of the Economy or Economic Democracy: A Grand Strategy for World Peace and Prosperity). With its own workers the new owners, along the lines of those subchapters, those industries would be operated efficiently.

By the same debt revaluation formulas, the modest market values acknowledged in those payments would be distributed to the few creditors still standing. As in all economic collapses, those values will be low to nonexistent. It will be the responsibility of the new manager-owners to operate a productive-profitable company and rebuild values. For that purpose and for new entrepreneurs, a department within the socially-owned banking system would fund major industries and businesses.

Worker owned businesses and cooperatives

They financing worker-owned businesses and cooperatives would be the economic ideal of labor employing capital. Since this banking system has the power to direct socially-created money to areas in need while simultaneously holding required reserves high enough to destroy surplus buying power and maintain a steady money supply, and each industry or business being responsible for their debts, funding would not be a problem. Loans to cover expansions and new enterprises would be available at interest rates high enough to cover risk.

The ethereal world of high finance

The many subdivisions of financial empires within the ethereal world above the real economy will have collapsed when the economy crashed while the socially-owned banking system will have kept the real economy operating.

The many methods of intercepting wealth within the vapory ethereal world of high finance that are reducing economic efficiency can wither on the vine. As most are financial empires built capitalizing unearned appropriated values, roughly 60% of America’s current huge blocs of capital are unneeded.

Except that they were unearned, a large share of that unearned wealth is invested in honest production. But a larger share circles within the ethereal world of high finance looking for more ways to lay claim to wealth produced by others. Except for bonds, most those intangible ethereal values will have disappeared in the economic collapse. With their disappearance, GDP will measure economic activity in the real economy.

A great hue and cry will go up that these blocks of capital are necessary to operate an efficient economy. That warning will be muffled as the mighty engine of full and equal rights capitalism, doubles the efficiency of the economy.

Once full and equal rights are established, a slim, trim, “real” economy will replace the highly-inefficient ethereal economy which had evolved into a crazy quilt of methods to intercept the wealth produced by productive labor from resources that nature offers to us all for free.

Each of those best and brightest who once owned and operated those niches within a monopolized economy will be guaranteed a “productive” job. There will be no need to carve out an unproductive survival territory or financial empire.

Those who see new opportunities will have access to investment capital through loan officers trained and experienced in financing promising new endeavors. Risk capital today claims the biggest share of successful endeavors. Socially-owned risk capital charging higher than normal interest would be paid from cash flow and those entrepreneurs would retain the capitalized values of their successes.

Due to the enormous power of a socially-owned banking system, what we have addressed philosophically can be done. That power is denied a private banking system because their property rights are designed for maximum rights to monopolists and minimum rights for all others.

In each financial crisis, the relative wealth of deeply entrenched monopolists increase as the entire nation, including non entrenched monopolists, goes broke. If your property is half paid for, the creditor owns half and you own half. But, when a financial crisis hits, values drop, the creditor owns it all, and you own nothing.

Instead of claiming what is properly your equity, a socially-owned banking system can rebalance debts to match value collapses and protect everyone’s honestly-earned equity. However, it has no responsibility for protecting unearned wealth appropriated under unequal property rights laws. A large share of the unearned wealth will have disappeared in the above collapse and revaluations. We address the remaining unearned wealth in the bond discussions below.

The goal is to restructure the unequal property rights laws established by power brokers over the past 700-plus years—which caused this, and all past, economic crises—to full and equal property rights with a quality life for all while working only two to three days a week and all with no risk of economic collapses. This philosophy eliminates monopolies while retaining a capitalist economy.

Reducing the employed work week to two to three days per week

Recognizing the security of titles to land with an initial purchase price of zero through paying resource rents to society, noting the efficiencies and equality of a socially-owned ­banking system, with the homes and equities of the maximum number protected, with insurance, universal health care, and retirement as social and human rights, with the respect and security of a productive job, and all this now part of the social dialog, a mandated reduction of the workweek to create a highly-efficient economy will be an easy sell.

Among the large numbers of unemployed will be people well qualified to calculate the number of productive jobs in a fully rationalized, efficient, economy. We will assume their calculations will match ours, two to three days work per week outside the home for each employable citizen. From that calculation, Congress would pass and a President would sign, or a voter referendum would mandate, a reduction of the work week by that 50%. A productive job for each is now guaranteed.

Subsistence payments continuing as wages during the first one to two months, or more, of an employment-learning period will readjust the workforce smoothly. Highly skilled jobs, pilots, railroad engineers, etc, will take substantially longer. A few skills, such as scientists, may take years to rebalance the workforce but that and a stable money supply can be seamlessly accomplished.

Equal pay for equally-productive labor

There are people that are much more productive than others but not so productive as to justify the current wide disparity in pay. There will be exceptions—an Einstein, an Oprah Winfrey, a president, and a few others—but serious researchers have concluded that a differential in pay no greater than two to one is reasonable.

Through raising the wages of the lower paid, this badly needed social adjustment should be put into effect simultaneously with sharing those productive jobs. Both poverty and subsistence payments are now history. Cost of products and services would drop roughly the same as hours worked. Living standards will average higher than before the collapse.

Creating money for building basic infrastructure

While the economy is being restructured, primary-created money should be spent for building basic infrastructure (the real economy). That money, as did the subsistence money, circulates and returns as reserve deposits (savings) available for spending or for loans within the real economy. This crisis will quickly subside as all checks or credit card-debit card charges against adequate bank balances within this socially-owned banking system are honored.

With debts restructured, property titles secure, with honoring of all adequate bank balances proving a socially-owned banking system automatically has 100% reserves, and with buying power in consumer pockets, the economy has nowhere to go but forward.

There will be other problems to resolve but, once the banking system is under social ownership and monopolies are eliminated, those are all solvable. The key is that most will have lost everything as the economy collapsed and everyone comes out of the economic crisis with secure title to homes and businesses, secure jobs, and equal and adequate pay.

Those full and equal rights create an economy that, so long as monopolies and ethereal worlds of high finance are avoided, will maintain stable and secure values for millenniums. After historic past economic collapses, citizenry distrusted banks and were afraid to go into debt. In contrast, this, potentially the worst of all collapses in history, would be so short, security restored so quick, and the socially-owned banking system proven so stable, the citizenry will soon spend and save normally.

Communication superhighways

We have analyzed communication superhighways as so efficient that it has the potential, possibly the certainty, of destabilizing the entire world monopoly system. It was studying that possibility that led to this analysis of the least traumatic way to restructure to a peaceful and prosperous world.

So we allow the communications industry as quickly restructuring to a communications superhighway along the lines of chapter five in Money: A Mirror Image of the Economy. Monopolization of phone, cable, TV, and radio, as well as 85% of the brick, mortar, and labor of the education system and possibly 60% of the infrastructure of retail industry, are replaced by communication highways.

With the old power structure totally discredited and thus without a political voice, alert and moral managers of state and an equally moral, but more likely frightened, Congress or a voter referendum would pass the necessary restructure laws as described above.

Some monopoly features are in the Constitution. With a citizenry enjoying the security and higher quality of life of these restructurings, constitutional and other legal challenges can be quickly set aside by national referendums.

Only under a socially-owned banking system can you quickly provide subsistence payments to a cold and hungry citizenry and simultaneously restructure debts and the entire economy. It is that quick alleviation of the crisis and rapid restructuring which alerts a citizenry to the full and equal rights possible by abandoning the monopoly system so carefully structured the past 700-plus years and which economic classics have told us is the best of all possible systems.

Until an alternative example has been put in place, most will be unaware they had been living under a monopoly structure. Besides the classics justifying what we prove is a system of theft, that misguided belief system is due to monopolists funding justifying philosophers, primarily through the spin of philosophically hard right think tanks in step with establishing, and as a part of maintaining, the monopoly system.

That explains suppression of the developing world’s breaks for freedom the past 60 years. If any example of full and equal rights for all ever successfully established itself, the now-exposed monopoly system would have collapsed.

An efficient world economy requires each region producing most of their consumer needs. Part of restructuring the American economy to keep everything local will be rebuilding regional industries that were sent overseas. Rebuilding and operating those industries will be the economic pulse of a nation.

That is why all nations require a regional currency acceptable only within the borders of an economically viable region. With a regional currency, money to build both industry and infrastructure can be created and that, plus resources and skilled labor, are the fundamentals for wealth production.

That foundation of an industrial economy, plus the wealth produced, backs the socially-created money, each unit of money is equal to the use value being bought or sold, and its circulation within fractional reserve banking operates the now “real economy.”

Necessary adjustments will be made after an analysis of how these monopoly laws evolved over the centuries. The conclusion can only be that they were unequal property rights put in place undemocratically to lay claim to wealth produced by others and those huge blocs of capital invested in bonds are, beyond that which is part of the roughly 40% which were honest earnings and savings, appropriated wealth.

Thurow’s explanation that “patient savings and reinvestment has little or nothing” to do with generating large fortunes bears quoting:

{A]t any moment in time, the highly skewed distribution of wealth is the product of two approximately equal factors—instant fortunes and inherited wealth. Inherited fortunes, however, were themselves created in a process of instant wealth in an earlier generation. These instant fortunes occur because new long-term disequilibriums (sic) in the real capital market are capitalized in the financial markets…. Those who are lucky and end up owning the stocks that are capitalized at high multiples win large fortunes in the random walk. Once fortunes are created, they are husbanded, augmented, and passed on, not because of “homo economicus” [economic man] desires to store up future consumption but because of desires for power within the family, economy, or society.

Bonds are the final sanctuary for appropriated wealth. While all other values are collapsing, interest rates fall and the values of earlier-issued bonds with higher interest rates rise. A doubling of bond values as real property values crash can be a quadrupling in relative values. Thus bankers control inflations and deflations by interest rates instead of adjusting mandated reserves. They move into bonds as interest rates peak and into stocks as interest rates bottom.

Just as aristocracy’s titles to land were for centuries the proverbial elephant in the living room denying all others the right to enjoy their full and equal rights, that elephant’s children, the share of that 60% of those huge blocs of capital once buying and selling capitalized appropriated values (misnamed profits) within the ethereal world of high finance that have moved to other investments, are still preventing full realization of rights.

As we addressed the simplicity of eliminating monopolization within each sector of an economy through theoretically restructuring to full and equal property rights, we pointed out that capitalized appropriated values had been transformed into equally-shared use values. But for centuries the money realized from selling those capitalized appropriated values had been moving into other investments, some into productive industries—addressed above in which those appropriated values disappeared through bankruptcy—and some into government bonds in which those values, both honestly earned and appropriated, have possibly doubled or tripled in value as industry values collapsed.

We will break through the complexities of millions of transactions through a simple example: If John Jacob Astor had given 100-year-leases on Manhattan Island, instead of selling it off piecemeal; those hundreds of billions of dollars in today’s value would belong to his ancestors. If those ancestors still held title to that land as the economy was restructured to society collecting the land rent, values tied to land will vanish.

But if they had sold that property before that restructuring, the new owners and the banks holding the mortgages would take that loss while Astor family money will be safely invested somewhere else. As it most likely would be, we will assume they invested in bonds.

Instead of those hundreds of billions of dollars going to Astor’s descendants, those monopoly profits were shared among the tens of thousands of people who bought and sold property on Manhattan Island the past 150 years. A large share was reinvested, a large share went for extravagant living, and another large share provided a comfortable life without the expenditure of labor.

That spent for high living and a life without labor have largely been wasted. That spent for entrepreneurial investment is a relatively efficient aspect of monopoly capitalism. Most loaned out at interest is also properly invested. But both the profits and the interest on that unearned wealth is also unearned wealth that has to be paid for by the very people from whom that finance capital was first appropriated. And it will be paid for again and again, on into perpetuity.

Moral investors within an unethical system

Within property rights, as currently unequally structured, those monopoly profits are properly invested. But current titles to nature’s resources and technologies, derived directly from aristocratic property rights and fine-tuned for the past 700-plus years as Western (imperial) property rights laws, are unequal, inefficient, and unethical. That marks a substantial share of properly-invested funds as unearned wealth including all “earnings” such as those who rode up the value of land as addressed just above.

So we have moral investors functioning within an unethical system. Those unearned blocs of capital create problems for a final restructuring to an efficient, productive economy with full and equal rights for all. Even though the economy has been theoretically restructured, a large share of those huge blocs of capital that were created only to buy and sell capitalized values of appropriated wealth are now invested in bonds.

Those unethically earned yet morally invested funds are both perpetuating the cycle of unearned wealth (just as you can’t rob a bank, invest that money, and say it was honestly earned) and blocking honest investment of honest savings and socially-created money.

The need for safe investments for these blocs of appropriated wealth led bankers to ignore the potential efficiencies of modern fractional reserve banking to create debt-free money for highways, railroads, water systems, sewers, communication superhighways, libraries, parks, etc. Such simple financial efficiency was ignored to provide a safe place (bonds) to invest the massive sums appropriated through unequal property rights as applied to nature’s resources and technologies which nature offers to all for free.

Until those huge blocs of unearned appropriated capital are addressed, the same problem still exists in a restructured economy. Investing that unearned wealth in property in competition with that honestly earned would inflate values and continue to siphon unearned wealth to those who had produced nothing.

As per above, investing unearned money in bonds would both deny society the right to create debt free money to build infrastructure or similarly penalize honestly earned savings. So it is impossible to restructure to an efficient economy without directly addressing those huge blocs of wealth which were unethically earned but ethically invested.

Resolving that conundrum

How do we resolve the conundrum of moral investors amassing wealth within an unethical system? The appropriated wealth represented by unearned values (earnings of non tangible values) in banking, technology, communications, insurance, health care, the legal system, etc, plus from the nature-created tangible values of land, have been eliminated by the above restructuring to full and equal rights.

Having no choice, those invested directly in those monopolies have taken their loss and still have a secure life. They can philosophize on their experience within what they did not realize, but all will now understand, were unequal and inefficient property rights. But unearned money which has been spirited away to the safety of bonds has yet to be dealt with.

Like the proverbial elephant in the living room, others cannot exercise their rights so long as that beast, appropriated wealth invested in bonds or which weathered the crisis in another safe niche, is still there.

In a complete revolution heads roll, property is confiscated, and new property rights laws are put in place. Considering the French Revolution lasted only 26 years before aristocracy once more ruled, revolutionary changes within imperial civilizations has been, as addressed in various chapters of Economic Democracy: A Grand Strategy for Global Peace and Prosperity, 2009, 2nd edition, more from four accidents of history than serous overthrows of governing systems.

Those four accidents were:

1) the vast expanses of land within America did not permit establishing openly-obvious aristocratic law,

2) those gained rights blowing back onto Europe,

3) those same gains in democratic rights forcing power brokers to give more rights (usually during economic or political crisis), and

4) the Cold War suppression of the world’s breaks for freedom forced massive sharing of wealth both with internal citizenry as supporters and soldiers and with allied nations necessary to stop fast expanding socialism.

Within those four political frameworks there were massive numbers of high quality people working to expand rights to all people and many rights were gained. But those gains are illusory. Shut off the wealth appropriated from the rest of the world; retain the residual feudal, monopolistic property rights; and imperial economies would—in the form of a few financial aristocrats and an impoverished citizenry—shrink to the aristocratic structure from which it never really successfully evolved.

That, of course, is the potential collapse we are describing in this thesis and outlining a path to a productive and prosperous world economy as opposed to the aristocratic monopoly system powerbrokers will be fighting to preserve.

Throughout those several centuries of struggles the citizenry were told—through the classics we now realize were only justifying a system of theft—that they had full and equal rights and that current property rights laws were structured for maximum economic efficiency.

We have thoroughly documented that the monopoly system in place for centuries is inefficient to the extreme and the rights we thought we had attained were only the enormous efficiency gains of technology—of which less than half its potential reached the people—and from the massive wealth appropriated from the periphery of empire.

Up to this point, all losses of unearned wealth due to restructuring the economy were within monopoly capitalism’s laws. By restructuring to utilize the mighty economic and financial engines of full and equal rights, most citizens quickly come out of the crisis with a quality and secure life.

Monopolists knew what they were doing when they created those laws, entrenched wealth invested in bonds has the greatest protection but they still can be addressed within current law.

The problem is rather straightforward:

1) Those huge blocs of capital created through capitalizing annually appropriated values (misnamed profits) are mixed in with honestly earned wealth.

2) As unearned wealth is continually reinvested, the citizenry from which that wealth was first appropriated must pay off those bonds and other investments over and over in perpetuity.

3) Those massive blocs of unearned wealth, needing secure havens for investment, deny society the right to create debt-free money and limit the investment options of honestly earned money.

4) The entire process reduces the efficiency of an economy and places it at a disadvantage in trades with fully restructured efficient economies.

Entrenched unearned wealth is today’s remnant of the aristocratic system sitting there preventing change just as predecessor unearned wealth has done for centuries. A truly free and democratic society can resolve that problem. Societies that tried were all overthrown or contained—the Soviet Union, Yugoslavia, Cuba (only contained), Indonesia, Chile, and many more—and their leaders branded as dictators and worse.

It is enough to point out that, even though under attack and embargoed for decades, Cuba has high-quality universal health care, education equal to the best in the world, their citizenry discuss and vote directly on laws and their constitution, they will—without charge—return sight to 4.5 million blind Latin Americans by 2015, and they have 40% of their 70,000 doctors working and teaching in many impoverished countries.

That is only a snapshot of what can be done through policies of full and equal rights as opposed to policies of monopolization. We assume the citizenry of the newly restructured economy can chart their way past that minefield of unearned wealth honestly invested in bonds and, because a resolution can only be outside of current property rights laws, leave resolving it to them.

A little hint, most of the current huge blocs of capital originated as appropriated wealth, those who own it feel it is earned, but even the earnings of honestly invested unearned wealth is still unearned. After all one cannot rob a bank, invest it honestly, and claim the earnings when finally caught. Obviously monopolists have been “caught” and most large accumulations of wealth are unearned. Those massive unearned funds can be recovered in a court of law as society is restructured.

There will be derivatives and hedge funds that will, after the shakeout and like bonds, place title to much of the nation’s wealth into the hands of very few people. Most these funds in the ethereal world of high finance—$526 trillion worth in July 2008, ten times world GDP—are schemes for appropriation of wealth through complex forms of short term titles (claims on wealth).

Under full and equal rights, money earned, and thus money spent, matches values created (GDP and accumulative money supply are exactly the same thing) and there are no needs for those shenanigans. Along the same lines as changing the rules when the Hunt brothers had the silver market cornered, which saved the market and came close to bankrupting the Hunts, these unearned wealth accumulations can be, and must be, set aside.

The derivatives-hedge fund problem, like the Hunt brothers cornering of the silver market, can be resolved along the guidelines of that previous crisis. Just as the Hunt brothers relinquished their claims to enormous unearned wealth, so should those final holders of the winnings of derivative-hedge funds bets.

A dual currency structure

Once the principles of full and equal rights are in place throughinclusive property rights, operation of an economy will be simplicity itself. There need be no taxes unless society decided to fund retirements through payroll deductions so as to have an accounting, and those would be insurance premiums, not taxes. With oil, minerals, and timber included, resource rents and banking profits will operate governments, build and maintain infrastructure, provide health care, fund retirements, and provide all social services normally provided by governments

Keeping the value of one’s currency in line with the currency of other nations requires an international currency, a bank for international settlements that is mandated to protect honestly earned values of all nations and regions. Blips on computers tied to the value of commodities at this World Bank will replace current international trading currencies.

While exports and imports are sold and purchased in the international currency, each nation or federated region will have full control of money within their borders. With those currencies having no value outside their borders, their banking systems can create money to build infrastructure and industries, rapidly develop their economies, and those are the values that the new World Bank must protect

Balance in world trade

As shown by the current American economy, which wasted over 50% of its capital, labor and resources for decades, an economy can balance anywhere. We have structured our theoretical economies with full and equal rights which will stay in balance forever.

Once regional economies are developed and efficient, currency values between regions will balance. Until that time, trade between regions must be managed; that is what trading resources for technology and establishing regional and international currencies were, in this example, all about.

Once each region is sustainably developed, its labor equally as productive and equally paid, those relatively equal currencies could be made interchangeable. But controlling cross-border flows of drugs, illegal harvesting of resources, criminal activities, keeping a finger on the pulse of the world, resolving problems before they get out of hand, elimination of currency speculations distorting and sabotaging an economy, and the right to experiment with potentially more efficient social structures favor a dual currency world trading system.

Primary-created money can, up to the level of a balanced money supply, install communication superhighways, build bridges, highways, city streets, water systems, sewers, parks, libraries, etc, and, in newly developing regions, initially even loaned to build industry. The circulation of that created money, balanced through higher or lower mandated reserves, will operate the economy including the superstructure originally financed by created money.

As the economy matures, more and more infrastructure costs will be covered by resource rents and banking profits and less and less from socially-created money. To stay within the earth’s capacity, a fully developed world economy with a quality life for all will create only the money necessary to replace destruction through natural disasters.

For the world to become peaceful, for poverty to be eliminated, and for protection of resources and the environment, something similar to what we lay out has to happen in a relatively seamless web worldwide. With modern communications, informing the world as it breaks out from under its centuries of monopolization, that can happen.

Assuming sharing technology in trade for access to resources has been agreed upon, a part of the surplus labor and resources within the wealthy world released by the rationalization of monopolized economies—that 50% of their economies which is wasted—should be turned to installing communication superhighways throughout the developing world and providing those first industries and training.

Investment in human capital is the most productive of all investments. But there are simple and cheap ways to do this (see Communication Highways Educating the World for 15% the Cost of Brick and Mortar Schools). Labor for intermediate technologies can be trained, should work as apprentices and, when fully trained, take over those jobs.

As they are educated and trained, local labor will take over the highly skilled jobs. They will train apprentices who, when trained and employed, will train more apprentices. Under such policies, practiced by guilds for centuries—but they, again for the purpose of monopolization, purposely avoided the exponential expansion of skills as we suggest—and remembering that in an efficient developed economy employed labor hours do not need to exceed two to three days per week, a skilled labor force can rapidly expand.

Education over communication superhighways

As communication superhighways are being installed, students will be trained to operate their personally-owned, school-system-provided, laptop computer. Recorded classes on all subjects will be prepared in whatever is chosen as a universal language for a region. Those recorded lectures and documentaries shall be translated into local languages.

If the world community is serious, the communications superhighway, recordings in databases on all subjects for all classes, and local scholastic testing stations will be operational within a developing region within five years of a decision to install an efficient communication-education system. Education would be available as fast as communication highways are installed and laptop computers distributed.

As motivated students will breeze through these classes at two to three times the speed of brick and mortar schools, first beneficiaries will be ready for college courses before communications superhighways are fully in place across a federated region.

Within 15 years all will be literate, within 20 years a population will be fully educated, and within 40 years their education level will be relatively equal to the best in the world. With tests showing one of the world’s highest scholastic levels, Cuba has already proven this even with brick and mortar schools. Venezuela and Bolivia will prove it shortly and other nations will follow.

Simultaneous with establishing a modern educational system, resources will be mapped and power systems, industries, railroads, ports, airports, roads, etc, planned. As energy is the resource in shortest supply, special attention must be given to solar and other non-polluting renewable energies. Permaculture and three dimensional orchard farming will create a secure food base while protecting, actually rebuilding, the soil and the environment.

Plants from which thread is produced, such as hemp, are highly prolific. So secure fiber production is also a function of permaculture.

Homes built from local soils–Rammed earth, rock, and brick–can provide comfortable shelter for centuries.

As food, fiber and shelter are all attainable locally, obviously community security is local and affordable. This exposes freedom to travel as the essence of freedom in a modern economy.

The money once spent on war can be turned to fulfilling the agreement to trade technology and training to the developing world for equal access to resources. A few crucial factories can be built with socially-created money and others built with savings as that money circulates and as the population becomes educated and trained.

Those factories, homes, and industries that emerge to provide services, consumer products, and wages to those modernizing that region will be the productive wealth that backs the newly-created money. Each unit of base money created increases the money supply (circulating money) 10 to 33 or more times depending on the required reserves. With no mandated reserves, a nation’s money supply is limited only by its velocity and rate of loan repayments.

Creating high use-values throughout the economy

Looking to the future, care must be exercised to create high values. Comfortable rammed earth homes with ceramic interiors that will last for centuries can be built for little more than, and in some regions cheaper than, the cost of mobile homes that have a lifespan of 30 years.

Gas-electric hybrids attaining 300 miles per gallon on the highway and will require just plug in recharging for short commutes, see Aptera Electric Typ-1 e – Video Test Drive, will permit commuting at 20% of today’s costs with minimal pollution.

The entire process will require management and oversight by a fully democratized United Nations or its replacement. Those alliances are the embryonic formations of a peaceful federated earth.

That world legislative body will replace negotiations overseeing the equal sharing of the world’s resources. As opposed to the federation of the United States, the European Union, and China centuries ago, all of which became powerful but internally unequal, a federation of the earth with full and equal economic rights will maintain peace, tranquility, equality, and a quality life for all its citizenry for millenniums.

A very quick summary:

Aristocracy’s theft of the land used in common was recognized as theft and fought against. But the unorganized common people were overwhelmed and they became serfs forced to hand over half or more of what they produced to the aristocratic lords of the land. When sheep produced more money than serfs, the enclosure acts gave exclusive title to that later lord of the land and denied the common people even those meager rights. Half of labor’s production within today’s aristocratically structured (monopolized) economies is still appropriated.

Compliant philosophers, we know them today as the classics, justified that theft. The principle of amassing unearned wealth through exclusive titles to nature’s resources and technologies, denying others their proper share, was applied to every sector of the economy.

As fast as a technology came on stream, exclusive titles were—primarily through the patent system and stock markets but also by license—bestowed on those in position to take advantage of the opportunity. Over time, rental values going to those holding title to natures resources and technologies and denying others their equal share or a license to practice within a monopolized system—banking, insurance, medical care, law, etc, also denying a citizenry their rightful share—were accepted as normal.

That those exclusive titles were designed to lay claim to unearned wealth was forgotten and titles and licenses to practice within monopolized systems were accepted as proper.

The enormous rewards—your name in history, promotions within the system, very well paid, etc—for writing and teaching a philosophy that protected the system were so great and the penalties—beheadings in those early centuries, today extreme difficulties in finding employment, ostracized to the fringes, and pay almost non-existent—so damaging that few stood up and the pure theft of exclusive titles to nature’s resources and technology, severely compromising economic efficiency, became accepted as highly efficient and any who would suggest different were easily ignored.

If a challenging philosophy gained credence within a culture, it would be suppressed by massive financial and economic power, embargoes, or covert and overt warfare. Those massive inflictions of violence were carried out under barrages of propaganda as to those under assault being dictators and genocidal murderers.

The truth was that, until successfully suppressed, the living standards rose rapidly in each nation that broke free and gained control of their resources and destiny. A power structure based upon the theft of others’ wealth did not dare let other nations, or their own citizens, see the potential gains of economies based upon rights of people to their share of resources and technologies through social distribution of those values produced by nature or to they gaining rights to the production of their own labor. Thus the suppression of those breaks for freedom form the major part of our history.

Perception management has been so intense that few realize they could be living a life beyond their fondest dreams while working half their current hours and all while lowering the pressure on resources and the environment. Under a system of full and equal rights, all would have rights to a piece of land (a home). That home could, through a communications superhighway, communicate with any other phone or computer in the world and all could be educated to whatever level they wished at almost no cost.

Three-dimensional orchard permaculture would permit neighbors sharing fresh vegetables and fruits from the garden each day and delivered from warmer climes during the winter. The local mall would carry groceries and small consumer items. At half the price, moderately-priced to expensive items would be ordered over the Internet.

Laws and constitutions discussed and voted on over that same communications superhighway would be participatory-direct democracy. Each person would be electronically identified, eye and thumbprint scans, etc, so there can be no cheating. Privacy aside, a society with full and equal rights would have almost no crime and big brother would have been done away with anyway.

Many jobs, recording, accounting, and communicating, can be handled from home and, if we share instead of monopolize, those employed hours will drop by half or more.

.As monopolies structured within property rights law as related to nature’s resources and technologies are eliminated, everybody has a human right to land for a home, health care, a secure retirement, a social right to educate oneself as far as one wanted to go, the social right to know of and discuss laws to be passed, the social right to vote on those laws, and on and on.

Keeping economic activity as local as possible, each federated region of the world, each country, each region of a country, each community, and each entrepreneur has rights to finance capital.

Just as inequality has been structured into past constitutions and law, virtually everything required for an efficient, equal, and honest community can be put into constitutions or law as a social right or a human right.

The right to believe, balanced by a right not to believe, requires a constitutional separation of church and state. All true costs are labor costs plus the rental value paid for nature’s resources which went into producing that product or service.

This is Green Economics with impressive reduced pressures on resources and the environment.

How was the opportunity for a secure quality life for all forsaken for the monopoly system we have today? Picture a fertile valley 5,000 years ago with fruits, nuts, vegetables grains, and thatch for homes in abundance.

If the meaner members of society laid claim to that land as theirs, and if they made a deal with subordinates to provide for them if they became guards, they will have established exclusive title and proceeded to live well by charging each a share of what they harvested from “their” land.

That is the establishment of aristocratic law which is our law today, as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free.

We and other unequal societies have lived within inequality structured in custom and law for so many centuries, and because each are always taught that theirs is the best of all possible social structures, we think it is normal. Our research documents that such customs and laws are unequal, unjust, and inefficient to the extreme.

That inequality structured in law siphons away so much money that those fortunate few can neither consume nor safely invest it all and soon the surplus has to be exported. But those unearned profits pull in more unearned profits.

Earnings on unearned wealth is still unearned wealth and world trade is even more unequal than internal trade.

When these “investors” have virtually no where else to go with their money, they expand the casino aspect of stock and commodity markets and essentially just gamble between themselves (the hedge fund-derivatives markets). Because that is how maximum profits are made, virtually all of this is done with high leverage.

Those high leverages (the debt structure) collapse when those bubble values collapse. And that is where we are today. Instead of pouring that freshly printed money at the real economy and restructuring to an honest economy as these final pages demonstrate can easily be done, the very people who created this house of cards have control of the Fed-Treasury and are pouring the newly created money at themselves.

Compare the simplicity of restructuring to full and equal rights for all, as we lay out, the impossibility of putting together the monopolized world that once was with excess power and unearned wealth still in place.

Any person’s excessive rights are other people’s lack of rights. The world now understands this and they will not accept those excessive rights and thefts of their wealth any longer.

The monopoly system established centuries ago, exclusive title to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free, is—hopefully—coming to an end.

Preventing this from happening is what wars and struggles of all kinds have been about as powerbrokers protect their unearned and excessive wealth and power gained through unequal property rights and they still are today.

Again we must point out that the customs, belief systems, and unequal property rights of cultures seldom permit a radical structural change as addressed in this theoretical model. However, it has happened, it can happen again, and perhaps President Barack Obama will lead us in that direction.

Past revolutions were carried out by too few people compared to the power of the empires still firmly controlling the world. Historic power centers did not dare let the world’s citizenry see a society with substantially more rights and freedoms.

Much of the history of the past 60 years has been the suppression of just such potentially freer people. This is why we focused on the importance of a large enough share of the world breaking free. Only when their numbers are large enough, through federating alliances, will a countervailing power be in place that can challenge current powerbrokers and demonstrate to the world a truly free, peaceful, and productive social structure.

Though no one can predict the outcome, the worldwide populist revolt that has been ongoing for centuries is picking up speed and power. With the dispossessed of one region in full contact with those of other regions, this time around the revolution hopefully will be uncontainable.

After all, if imperialism cannot militarily contain 26 million Iraqis, how can they contain three to five billion people worldwide allied together to gain their freedom?

To those battling hard for their freedom we must add the rapidly expanding legions within the imperial centers who recognize this is, and always has been, an empire. People are good and they will not tolerate their government terrorizing the rest of the world, stealing their wealth, and wasting over half of it in the process.

A major study has calculated that many more countries of the world will be developed by 2035. China will be ahead of America, India will not be far behind, Turkey will equal Britain and many other countries will have done equally as well.

China, India, Japan, Russia, and every other country that is developmentally advanced is much better off trading technology and training to South America and Africa for access to resources than they are currently trading with America and Europe for dollars and Euros. That process of decoupling will be slow and steady but it will happen.

What they were analyzing is the massive efficiency of technology even as the major imperial centers still try to prevent the development of the periphery of empire.

Having lost their monopoly on technology, they simply cannot prevent development of other nations no matter how hard they try. It is either deal with the rest of the world equally and fairly or it will be World War III.

Since all sincerely want peace, we have addressed the possibilities, and the outline, of a peaceful velvet revolution. We are aware that the world is unlikely to fully break free from the strangle hold of imperial capitalism’s unequal property rights. The more people who learn about the true causes of poverty and war, the more possible it becomes.

Other societies have other methods of monopolizing power, wealth and rights, many lacking the economic engine effect of imperial capitalism. Those systems will be just as difficult to reform as those of the West.

So it will be a long struggle. Some societies may try socialist or communitarian economic structures. For those economies to be efficient, five rules must be followed:

1) Society must collect all resource rents and utilize those funds plus the profits from a socially-owned banking system to operate governments, federal, state, and local, and to build and maintain infrastructure.

2) A socially-owned and operated banking system must create money to build infrastructures and, in the initial stages of development, crucial industry. Required reserves must be managed (raised or lowered) to maintain the proper level of buying power.

3) The costs of health care and retirements should be covered by profits of a socially-owned banking system or resource rents.

4) Inventors must be well paid and all patents placed in the public domain.

5) Control must be regional and local. Each federated region, each state, each community, and each entrepreneur will have a constitutional right to finance capital. Think of it like your dinner table, none are required to pay rent to sit there and all get their share.

All this thesis does is, through applying the philosophy of full and equal rights across the full economic spectrum, eliminate monopolization of the bounty nature offers for free, and all receive their share.

Those five points are easiest to understand as Henry George’s inclusive property rights, his mighty economic engine. By fully applying his philosophies, each citizen of this world can have a quality life. Employers, employees, creditors, and consumers—everyone within the social structure—are protected.

Once such a revolution in economic thought has become universal law, the world will have the tools to address global warming, resource depletion, the massive waste of resources and labor, and other problems related to the limitations of our small planet.

This is not a prediction of what will happen or even of what can be easily established. It is only a guideline pointing out it can be done if the world’s powerbrokers would set aside their quest for personal wealth and power and develop visions of a fully developed humanity. Our survival depends upon it.

Perception management within imperial capitalism creates a mental prison within which prisoners (the impoverished, including those on the periphery of empire), guards (all true believers which include many of the dispossessed), maintenance workers (labor), managers (monopolizers, corporate media), etc, are, to some extent, continually trading places.

Because belief systems imposed upon all societies protect power and wealth, they will not—until the system collapses and they and their children are cold and hungry—join together to gain their freedom and full rights. The failings of all those belief systems are their laws not being structured to efficiently and equally distribute the wealth processed from natural resources that nature offers to us all for free.

Those failures are corrected through  society collecting the rental values on nature’s resources and technologies or those values remain with the citizenry when first produced. Those funds will provide health care, retirement, insurance, build social infrastructure, and operate governments and all while reducing employment outside the home by half. It is all possible, let’s do it.

The next page within this group is The Simplicity of Eliminating Poverty is paying resource rents to ourselves.

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Footnotes and Endnotes below

Run a search for “Plunge Protection Team.” After the financial collapse of 1997, South Korea invested heavily in education and leading technologies and they recovered. Those are replays of Germany’s and Japan’s historic and intense investments to break past Britain’s and America’s patent monopolies. Our suggested approaches to modernization of the undeveloped world are only such policies applied cooperatively regionally, even world-wide.

A banking system can be balanced anywhere from highly efficient to its current extremely corrupt monopolized inefficiency. The world economy is just as unbalanced as national economies. Debts between, and within, all nations will have to be renegotiated along the lines of renegotiating debts within America as we are addressing. This will be a huge effort but, as demonstrated by this simplified example, it can be done. Each nation or region will have to operate their economies with a new currency as they renegotiate contracts and debts with all other nations and regions denominated in a world currency (a dual currency structure). Sacrifices will be required by all.

This will take a full restudy of nutrition and drugs without input or interference by food or drug companies and providing the citizenry with the knowledge to take control of their own health. Remember deaths go down when doctors go on strike. Both deaths and food costs will drop rapidly when the processed food craze is understood as a primary cause of diabetes and heart disease (transfats) and avoided.

Land as the mother of all monopolies is obsolete. This treatise proves that monopolization of both banking and technologies are equally as powerful and damaging to an economy. We have addressed above the elimination of the monopolization of technology as the key to developing the impoverished world. Thus patent monopolies have adverse effects equal to either land or banking monopolies.

The simplicity of inflation and deflation control proves that inflations were due to conscious decisions. An example is the 2002-06, housing bubble. Money had to be created to buy and sell those doubled values. It is well understood that borrowing against the values created by the housing bubble was the buying power that rescued the stock market which had collapsed 40%. So that housing bubble was a planned event utilizing created money to rescue the stock market which only creates another imbalance that has to be weathered. All such maneuvers protecting power and wealth disappear when an honest banking system fully funds the real economy and the many games in the ethereal world of high finance intercepting massive wealth are history.

In either case it is possible to create money for both infrastructure and industry and control the money supply through higher mandated reserves. As the many possibilities leave monopolists out of the loop while maintaining the efficiencies of money, required reserves has been little used within the American economy. This author’s calculations are that these options will, valued in productive labor units, lower product and service costs by half or more. Socialist and communitarian philosophers can insert the efficiencies of Henry George into their philosophies.

In the crisis of the 1930s, the legislators were just that frightened which is what permitted the passage of many laws giving Americans rights taken for granted today (Social Security, Unemployment Insurance).

The powerful have established many blocks to changes, constitutional and legal, into their property rights laws. But a if an alert leader can quickly provide security to a cold, hungry, and panicky citizenry with promises of total security for the foreseeable future few legislators or judges would dare stand against it and national referendums will override those hold outs.

Bonds and treasuries held by financial institutions of other countries will require negotiation. A just settlement will require sacrifices from all parties.

Money can still be created but that excess money supply will unbalance investment markets just as is happening today. The massive levels of created money today would appear to discredit this position. But that money is being created for all the wrong reasons, wars and protection of the monopoly system.

Those disadvantages being resolved for centuries through worldwide control of resources and the wealth producing process are addressed in this author’s Economic Democracy: A Global Strategy for World Peace and Prosperity, 2nd edition.

Note how the elimination of monopolization of technology permits the rapid and low-cost development of poor regions of the world. Protecting the many forms of monopolization has been the cause of war and poverty throughout history. Even our earliest forefathers were battling over resources (territory). It is time to eliminate all forms of monopolization and share this world in peace.

In A Perplexed Philosopher, Henry George describes how Herbert Spencer, the leading thinker of the late 19th century believed fully in society collecting land rent. He simply was not let back into polite society until he recanted those views. That peer pressure has successfully kept the system protected for several hundred years. Most professors and intellectuals know in advance they will be ostracized if they seriously challenge the fundamentals of the system. Those who do challenge are marginalized to the fringes. It seems only revolutions break through firmly entrenched belief systems.

Actually all infrastructure and industry can be built and maintained with created money and mandated reserves can be raised high enough to maintain stable, as opposed to inflationary, buying power (a socialist’s dream). But such an economy would have no finance capital amassed from savings (so stored labor would not be paid) and no financial or efficiency accountability, so we stayed the mighty economic engine of full and equal rights capitalism. It could just as easily be designed as a socialist or communitarian economic engine.

If the principles of full and equal rights had been in use the past few hundred years instead of the current monopoly system, production would have immediately doubled, doubled again in a few years, doubled again the next few years, etc, on up to the level of a fully sustainably developed world and all without poverty or war.

As you will have noticed, this same story can be told from the perspective of rights and human rights.

We first address how Henry George  Envisioned the Simplicity of Eliminating Poverty a Century Ago

Those crucial 170 words describing an honest, efficient, capitalist economy. Does anyone have the ear of President Barack Obama’s Economic Recovery Team?

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James Livingston, Origins of the Federal Reserve (Cornell University Press, 1968), chapters 7 & 8, John Kenneth Galbraith in Money: Whence it Came, Where it Went (NY: Houghton Mifflin, 1995), pp 126-83, 188, especially pp 134, 144, 177-90, 195-96, 199-200, and William Greider’s Secrets of the Temple, especially pp 49-50, 280,

Thomas K Grose, “Free Health Care for All,” U.S. News (March 24-April 2, 20070), p. 65.

Lester C. Thurow, Generating Inequality (New York: Basic Books, 1975). p. 149.

Ibid, p. 154, (emphasis added).

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